NOTE 2:   INCOME TAXES

At December 31, 2016, the Company had a net operating loss carryover of approximately $305,000 which expires from 2018 to 2036.

However, due to the fact that the Company has had a change in control, the loss will most likely never be utilized.

At December 31, 2016, the Company had deferred tax assets of approximately $144,000.  The amount has been reserved 100% due to the Company’s history of losses.

The increase in the valuation allowance was approximately $8,000 and $13,000 for the periods ended December 31, 2016 and 2015, respectively.

Components of income tax are as follows:

A reconciliation of the provision for income tax expense with the expected income tax computed by applying the federal statutory income tax to income before provision for income taxes is as follows:

The Company complies with the provisions of uncertain tax positions as addressed in ASC 740-10-65-1. As a result of the implementation of ASC 740-10-65-1, the Company recognized approximately no increase in the liability for unrecognized tax benefits. The Company has no tax position at December 31, 2016 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. No such interest or penalties were recognized during the periods presented. The Company had no accruals for interest and penalties at December 31, 2016. The Company’s utilization of any net operating loss carry forward may be unlikely as a result of its intended development stage activities. Tax years 2014 through 2016 are open to examination by the tax authorities.